Law firm warns employers over new rights for agency workers

A leading law firm is warning employers to review their use of and arrangements with agency workers, following an EU deal to give agency workers new rights.

Mace & Jones Manchester based employment law partner Phil Allen said it is critical employers consider their obligations after the agreement reached in Luxembourg in June following a deal in the UK between the CBI and the TUC. It means that after a 12-week period of engagement, UK agency workers will have the same pay, holidays and other working conditions, such as overtime and breaks, as directly recruited staff.

Mr Allen said with more than a million agency workers employed in the UK this was a massive issue for employers.

“Agency workers’ jobs can last a matter of hours, months and – in some cases – more than a year,” he said. “But this new European agreement means those workers will receive equal treatment after 12 weeks in a given job.”

Mr Allen said even before the ruling he was seeing an increasing number of business owners in difficulty over their dealings with agency workers.

“Businesses are increasingly relying on agency workers attracted by the very fact that their legal obligation to them is less than it is to permanent staff,” he said. “But it is critical to understand that agency workers have discrimination and other rights and this can make them more of a risk than employers envisage. With the new extension to their rights, it will be vital employers plan and prepare when taking on agency staff to avoid being tripped up.”

Mr Allen confirmed some employment legislation, such as anti-discrimination law applies to agency workers, but unfair dismissal protection is only available to employees.

“Agency workers are still a very attractive option for growing businesses and those industries with a skills shortage,” he said. “And in that sense it is vital firms know how to use agency workers to the maximum benefit of the business. Critically they provide employers with flexibility and avoid costly contractual obligations that kick in when permanent staff are made redundant – which of course is a major consideration in the current economic climate. Nevertheless, despite these attractions, employers need to guard against underestimating the employment law covering agency workers.”